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K7sc123
New Member

Business expense deduction for computer purchased with student discount

My wife needs a new computer for a work from home job. We plan to file jointly. I am a student, so I have access to a student discount for computers. I plan to use my student discount to buy a new computer for her to use for her job. I know in general this is a valid expense to write off as a business expense. However, I am wondering if, in the case that we are audited, a student discount showing up on a receipt for a business expense will appear to be a red flag?

3 Replies
xmasbaby0
Level 15

Business expense deduction for computer purchased with student discount

You say your wife has a "work from home" job--but you did not mention whether she will receive a W-2 or if she is an independent contractor who will be reporting self-employment income.   If she is a W-2 employee, she cannot deduct job-related expenses on your federal tax return.    If she is an independent contractor then her business expenses are entered on a Schedule C.

 

 

-W-2 employees cannot deduct job-related expenses on a federal return.  Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond.  Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

 

 

 

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Critter-3
Level 15

Business expense deduction for computer purchased with student discount

Using a student discount is no different than buying the item on sale or using a coupon or other discount method.  You deduct the actual cost you paid so this is not an audit issue.

Opus 17
Level 15

Business expense deduction for computer purchased with student discount


@Critter-3 wrote:

Using a student discount is no different than buying the item on sale or using a coupon or other discount method.  You deduct the actual cost you paid so this is not an audit issue.


It doesn't matter why you get a discount for any purchase of goods or services, you just report the net price as the asset cost or expense.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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